Pre Award Phase

1. Pre Award Phase

2. Best Value System: PIPS & PIRMS PHASE 1 PHASE 2 PHASE 3 Measurement of Deviation from the Expectation Pre Planning and Risk Management Identification of Potential Best-Value PIRMS PIPS Performance Information Risk Management System Performance Information Procurement System 2

3. Best Value Objectives • Identify and outsource to an Expert who has a plan prior to contract signing • Transfer risk • Transfer control • Minimize risk of non-performance • Meet expectations • No change orders or schedule delays • High Customer satisfaction / No complaints • No Finger pointing • Minimize client management, direction, and decision making. • Have a transparent and measured environment with known accountability and performance • In return, the vendors can maximize profit by being more efficient WIN WIN

4. Best Value Process Filter 2 Proposal & RAVA Plan Filter 3 Interview Key Personnel Filter 1 Past Performance Information Filter 4 Prioritization (Identify Best Value) Filter 5 Pre-Planning Phase Filter 6 Weekly Report & Post-Rating High Quality of Vendors Award Low Time 4

5. Pre Award PeriodWhat is it / Why is it important Period of time allotted to potential best value vendor (aka the Expert) to: Think about and preplan the project Set a plan for its delivery / clarify that your proposal is accurate Identify the risks and issues that could cause the plan to deviate Identify what you don’t know and when you will know it and how the plan could change based upon what you discover Set plans to minimize those risks from occurring Address all the concerns and risks of the client 5

6. Pre Award PeriodWhat is it / Why is it important Period of time allotted to potential best value vendor (aka the Expert) to: Know how they are being successful and adding value (measurement) What metrics you will use What is the current baseline condition we are comparing against Identify what you need from the client and have a plan for getting it Have completely aligned expectations between all parties so everyone knows what is going to transpire and what they are supposed to do 6

7. PA Kickoff Meeting PA Period PA Final Meeting PA Document Pre Award Phase Components

8. Path Forward • Pre-education for Client and Vendor • Set pre-award period schedule • Vendor initiates and maintains Weekly Risk Report • Vendor prepares Risk Management Plan • Vendor Presents Project Plan/Risk Management Plan to client • Vendor identifies scope, financial info, risk, etc. in plan • Client and vendor work together and finalize plan • Baseline metrics/condition set (if applicable) • Hold pre-award summary meeting • Sign contract

9. Non-Detailed vs. Detailed Non-Detailed Non-Detailed Non-Detailed Non-Detailed Detailed Filter 6 Weekly Report & Post-Rating Filter 1 Past Performance Information Filter 4 Prioritize (Identify Best Value) Filter 5 Pre-Award Phase (Pre-Plan) Filter 2 Proposal & RAVA Plan Filter 3 Interview High Quality of Vendors Award Low Time

10. Project Management Model Initial conditions Final conditions M3 C1 M2 Laws Laws Time • C1: Client Expectations based decisions and various factors – may or may not be “realistic” • M1: Measured vendor plan that more accurately describe the initial conditions replaces C1 – converts to a predictive contract • M2: WRR/RMP measures deviation & performance to plan • M3: Final performance measurement M1

11. Traditional Risk Model C V B Buyer Controls Vendor Through Contract

12. Best Value Risk Model C V B Vendor Manages/Minimizes Risk With Contract - Contract is predictive

13. Pre Award Document(Risk Management Plan) Scope & Project/Effort Plan Clear and Detailed Project Scope (what is and what is not included) – Set Baseline Expectation Cost/Fees agreed to and clarified Schedule (Milestone) Risk Minimization Uncontrolled Risks List A list of Risks Proposer does not control with plans to minimize Identified Risks List A list of all previously identified risks (by other bidders, user, and client) with plans to minimize Client Action Item List Weekly Risk Report Set Up Performance Metrics Other: Agreed to Value Adding Options, Original RAVA Plan, Interview Minutes, etc…

14. Note to Vendor and Client -Do Not Work in a Vacuum!!!!! • The Pre Award period is a time for the client and Vendor to interact • Maximize effort BEFORE the event begins • The Vendor should not work in a vacuum • There should be regular meetings between vendor and client • An Outcome of Today’s meeting: PA Period Meeting Schedule • Complete honesty • Optimize within client constraints • Vendor should be the leader/driver • All critical parties/groups should be coordinated with

15. 1. Scope • Projects need to have clear scope at the start of the service • Everything within the expectation/budget • Minimize/Eliminate Client/User Scope Changes • Detailed Scope • Scope identifies what is included and what is not included • For example, start with “Zero Risk” Scope and work backwards • Conservative is best • If risks exists between scope and client intent they must be identified • Resolve alignment and expectations before signing the contract • Identify path to identifying unknowns during contract

16. 2. Cost/Fees • Details of fees, payments, etc • Clear and simple movement of money identified • Cost can be adjusted based upon value adding options • RAVA Plan • Additional risk elimination actions

17. 3. Milestone Schedule • Project schedule that can be worked from • Simple to read • Simple to use • Intent: Minimize Risk = Help All Parties be more efficient and accountable • Contents • Major Activities, Deliverables, and Milestones (linked to metrics) • Client Action Items clearly identified (e.g. red) • Risky areas / decision points clearly identified (e.g. green)

18. 4. Uncontrolled Risks List • List of Risk Vendor does not control • From RAVA and any place else • Example Format • Risk #1: Description of risk (or why it is a risk) • Solution: Provide your solution. Because this document is not constrained by a page limit, it is acceptable to add more detail to your previous solution provided in your RAVA plan. Make sure it is identified at what point you have done everything reasonably possible. Identify the impact if the risk still exists after you have done everything reasonably possible. • Step 1: • Step 2: • Step 3: • Step 4: • Step 5: • Etc. • Action If Risk Occurs: Similar to above, but a list of action items once risk occurs • Expected Impact if Risk Occurs: For example, “If we have done the above X steps and the risk still exists, there will be an impact to the …budget…schedule…of $XX.XX…XX days.”

19. 4. Identified Risks Lists • List of Risks that have been previously identified • All other bidders’ risks • All client technical concerns, risk, issues, and bugaboos • All user concerns, risk, issues, etc. • Same format as for Uncontrolled Risks List • Risk • Solution/Plan to Minimize • Action if Risk Occurs • Impact is Risk Occurs • If a risk is not a risk, just say why it is not a risk…

20. Uncontrollable Risk 1 The client has agreed to move storage boxes prior to the NTP. The boxes are blocking the wall where we will install the new electrical equipment. If the material is not moved we will not be able to install the equipment. If material is not moved we will perform the following: Immediately notify the client and track in our weekly report. We will mobilize and perform other functions. However, if material is not moved by 2nd week, this will cause delays. If the client cannot get the material moved, we can move the material into another room (on the same floor) at no additional cost or time delay. The client will have to move the material back. Or, we can rent a storage container for the duration of the project and move the material into storage and back into the room after completion. This will cost $1,500 and add 1 week to our schedule. 20

21. Uncontrollable Risk 2 • One of the biggest risk on this service is falling debris from the roof deck onto personnel or equipment below the deck. On this service, the personnel and equipment are protected since there is a dropped ceiling beneath the deck. The PM (client) has assured us that these tiles have been installed properly and we have randomly spot checked areas to determine that they will perform. However, if for some reason the ceiling tile fails, we will perform the following: • Immediately stop all work and determine the extent of damage • Identify if work can proceed as is, or if additional protection is needed • We can modify our schedule to work off-hours to protect falling debris from hitting personnel, but this will not protect equipment. There will be no impact to cost or time if we have to work off-hours. • We can purchase large tarps (100’x100’) and place them beneath the ceiling tiles. This will protect both personnel and equipment. These special tarps will cost an additional $5K and will take an additional 2 weeks to setup and move. • Identify any actions required from the client

22. 5. Client Action Item List • Client Action Item List • List of all actions/tasks that the vendor requires from the client • Each Action Item will have a: • Activity • Person Accountable in the Client organization • Agreed to Due Date

23. 6. Weekly Risk ReportsWhat is it / Why is it important • What is it: • Excel Spreadsheet that tracks unforeseen risks on a service • Why is it important: • Allows vendors to document unresolved client issues • Allows vendors the ability to show they can manage a service through risk minimization • Allows vendors to document all client decisions • Provides PM a weekly/monthly analysis of all services • Will be used to monitor the progress and performance of the entire client organization (this isn’t just for a specific contractor or a specific service...there is a bigger picture) • How much effort: • Minimal (less than 5 minutes), unless contractor did not preplan, or client making decisions

24. Weekly Reporting System (Sample) • Excel Spreadsheet that tracks unforeseen risks on a service • The client will setup and send to vendor once Award/NTP issued • Vendor must submit the report every week (Friday). • The final service rating will be impacted by the accuracy and timely submittal of the WRS

25. More on Weekly Risk Report later

26. 6. Weekly Risk Report • We will be starting a weekly risk report for the pre-award period • Contents: • Contact Info • Pre-Award Schedule • Risks/Issue Tracking • PBSRG will provide specific detailed education individually with the vendor

27. 7. Performance Metrics (if necessary) • Performance Metrics • Metrics established • Baseline numbers (starting point) of current performance • Reporting period

28. RISK MANAGEMENT PLAN • Risk • Risk Minimization • Schedule • WEEKLY REPORT • Risk • Unforeseen Risks • METRICS • Time linked • Financial • Operational/Client Satisfac. • Environmental • PERFORMANCE SUMMARY • Vendor Performance • Client Performance • Individual Performance • Project Performance Management by Risk Minimization Unforeseen Risks

29. 8. Other • All other items of importance • Including • Value Adding Options agreed to • Original RAVA Plan • Interview Minutes • Any specifications • Any other pertinent information

30. Pre Award Final Meeting Is not a “Q&A” meeting All issues resolved All coordination complete All risks that are not in vendors control have been identified All value added options have been addressed PA Meeting is to summarize all of the coordination that has been complete and walk through the PA Document/RMP Upon successful completion of the PA Meeting, the client will make the award 30

31. PIPS Process Filter 6 Weekly Report & Post-Rating Filter 1 Past Performance Information Filter 4 Prioritize (Identify Best Value) Filter 5 Pre-Award Phase (Pre-Plan) Filter 2 Proposal & RAVA Plan Filter 3 Interview High Quality of Vendors Award Low Time 31

32. Final Rating Filter 2 Proposal & RAVA Plan Filter 3 Interview Key Personnel Filter 1 Past Performance Information Filter 4 Prioritization (Identify Best Value) Filter 5 Pre-Planning Phase Filter 6 Weekly Report & Post-Rating High Quality of Vendors Award Low Time 32

33. Final Rating After the project is complete, the client will evaluate the project. The Final Rating will be heavily impacted by: Performance (change orders, delays, etc) Owner surprises Complaints Ability to submit accurate and timely weekly reports In Best-Value Procurement, the vendors goal is to get a high rating in order to stay competitive. 33

34. 50% Modification 34

35. Example

36. Immediate Action Items • Pre-Award meeting schedule • Hold weekly phone calls • Review schedule • Review issues/risks • This carries forward into the project • Risk Minimization • Lists of risks/concerns/issues from the client, the other vendors, user, etc. • Lists given to vendor • Initiate Pre-Award Period Weekly Risk Reporting • Begin Pre-Award and RMP development – will become functional pieces of contract

37. Best Value Vendor Characteristics • Preplans and Minimizes Risk on Each Initiative • Has a plan and knows the risks to the plan • Is transparent • Communicates clearly • Asks good questions, knows what they don’t know • Measures Performance and drives accountability • Uses Dominant Information to Differentiate themselves/show value added • Educates the Client and helps the client be a better client • Educates themselves and has a continually enhanced vision • Holds themselves and the client accountable • Their plan is aligned so that when they win, the client automatically wins

38. Best Value Client Characteristics • Ensures their needs and concerns are known by the vendor • Ensures the vendor has a plan that addresses each need/concern/risk • Is a facilitator to the vendors development of the plan(s) • Enforces the best value structure • Weekly risk reporting is being done • Each risk is given a client satisfaction rating • Measurements by vendor are being done • Do not be pulled into making decisions you do not need to make • Educates themselves and the vendor • Avoids reversion • Transfers risk and control • Holds the vendor and themselves accountable • Ensures the plan is aligned so they win and the vendor wins

39. Comments / Questions W W W . P B S R G . C O M